Step 1: identify the target customer

The first step of the Lean Product Process is identifying the right customer segment. Companies define their target customers by capturing key attributes, including needs, demographics, psychographics, and behaviors. Demographics include group statistics like age, gender, income and education.

In the case of B2B, firmographics is used instead. Psychographics classify people according to attitudes, values, opinions, and interests. Behavioral data segments based on the occurrence and frequency of behaviors. In some cases, the person who makes the purchase decision is different from the end-user.

Therefore, it is useful to distinguish the two and identify their distinct needs.

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